Diesel Export Tax Jumps to ₹11.50 as Petrol Levy Ends

Diesel exports now face a levy of ₹11.50 per litre, the highest rate in this recent round of changes. Petrol exports are free of the previous ₹2.50 charge. The new rates took effect on October 31. The government also raised the charge on aviation turbine fuel, or ATF, exports by 50 paise, to ₹11 per litre. ^1,2

Those three rates mark a sharp change from the review that took effect on October 16. Then, the government raised petrol’s export levy from 50 paise to ₹2.50 per litre and cut diesel’s from ₹16 to ₹8.50. The Finance Ministry’s latest notices reverse those moves for petrol and diesel in opposite directions, while slightly raising ATF’s rate. The government has adjusted export duties every two weeks since bringing them back in March amid the West Asia crisis. ^2,9

The two-week review is meant to respond to international fuel prices and the returns refiners can earn abroad. When overseas sales look more attractive, export charges can make sending fuel abroad less appealing and help keep products available at home, the government has said. The latest measures apply to exports, not petrol or diesel sold for domestic use. The Finance Ministry said domestic duty rates are unchanged. The notices do not themselves change pump prices. ^1,3

Those unchanged domestic rates set an important limit: the decision does not announce a new tax for motorists. Instead, exporters face a higher cost on diesel and ATF shipments, while petrol exporters no longer pay the levy. The new rates apply from October 31 for the next fortnight. Then, the government can reset the charges in response to market conditions. ^1,12